Ethereum gas fees cool down after May memecoin frenzy
Source: Dune AnalyticsThe memecoin frenzy began in late April and took center stage in May, leading to multiple brand-new memecoins striking the markets, such as Aped (APED), Bobo Coin (BOBO) and others. Another popular reason for the rise in the Ethereum gas fees was the surging popularity of memecoins on decentralized platforms, with mainstream centralized exchanges taking longer to list them.May was not just about the Ethereum memecoin craze; Bitcoin Ordinals likewise gained considerable appeal. Source: Dune AnalyticsWith the memecoin craze passing away down, Ethereum gas costs have cooled, and Ordinals engravings have also decreased significantly.Magazine: Ordinals turned Bitcoin into a worse version of Ethereum: Can we fix it?
Another popular factor for the increase in the Ethereum gas costs was the surging popularity of memecoins on decentralized platforms, with mainstream centralized exchanges taking longer to list them.May was not practically the Ethereum memecoin frenzy; Bitcoin Ordinals also got substantial popularity. Ordinals allow decentralized storage of digital art on the Bitcoin blockchain. As a result, the Bitcoin network registered numerous new memecoins, with Pepecoin (PEPE) achieving a billion-dollar market capitalization.Related: Bitcoin metrics to the moon: ATH for hash rate, daily deals and OrdinalsOrdinals were presented in January, and by the end of May, the number of Ordinal inscriptions on the Bitcoin blockchain had actually exceeded 10 million. Overall charges paid for Ordinals engravings rose 700% in May to presently sit at 1,639 Bitcoin (BTC). Overall Ordinals engravings on the Bitcoin network. Source: Dune AnalyticsWith the memecoin frenzy passing away down, Ethereum gas costs have cooled, and Ordinals inscriptions have likewise decreased significantly.Magazine: Ordinals turned Bitcoin into a worse version of Ethereum: Can we repair it?
In terms of gwei– a denomination of Ether (ETH) that represents one-billionth of one ETH– the everyday median gas price has decreased to 24 gwei from a peak of nearly 140 gwei last month, according to Dune Analytics.Average gas charges on Ethereum in the previous 6 months. Source: Dune AnalyticsThe memecoin craze began in late April and took center stage in May, leading to several new memecoins hitting the markets, such as Aped (APED), Bobo Coin (BOBO) and others. Instead of ETH, Wrapped Ether (WETH), or Tether (USDT), memecoins such as Troll (TROLL), APED and BOBO became the top 10 spenders.
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Other Questions People Ask
What caused Ethereum gas fees to rise during the May memecoin frenzy?
The surge in Ethereum gas fees during the May memecoin frenzy was primarily driven by the explosive popularity of new memecoins like Aped (APED) and Bobo Coin (BOBO). As these tokens gained traction on decentralized platforms, the demand for transactions increased significantly, leading to higher gas prices. Additionally, mainstream centralized exchanges took longer to list these new coins, further fueling the activity on the Ethereum network.
How did Ethereum gas fees change after the memecoin craze subsided?
After the peak of the memecoin frenzy in May, Ethereum gas fees experienced a notable cooldown. The daily median gas price dropped from nearly 140 gwei to around 24 gwei, reflecting a significant decrease in transaction demand. This cooling off can be attributed to the waning interest in memecoins and a reduction in overall network congestion.
What impact did Bitcoin Ordinals have on Ethereum gas fees during May?
During May, Bitcoin Ordinals also gained substantial popularity, which contributed to the overall dynamics of gas fees across blockchain networks. As Ordinals allowed for decentralized storage of digital art on Bitcoin, they attracted a considerable number of users, leading to increased activity on both Bitcoin and Ethereum. However, as the memecoin frenzy began to fade, both Ethereum gas fees and Ordinals inscriptions saw a decline.
What are some of the new memecoins that influenced Ethereum gas fees in May?
The memecoin frenzy in May introduced several new tokens that significantly influenced Ethereum gas fees. Notable examples include Aped (APED) and Bobo Coin (BOBO), which quickly became popular among traders. These new entrants led to increased transaction volumes on the Ethereum network, contributing to the spike in gas prices during that period.
What does the decrease in Ethereum gas fees indicate for future transactions?
The recent decrease in Ethereum gas fees suggests a potential return to more stable transaction costs for users. With the cooling off of the memecoin frenzy and reduced network congestion, users may find it more economical to engage in transactions on the Ethereum blockchain. This trend could encourage greater participation in decentralized finance and other applications that rely on Ethereum's infrastructure.